Summary
Thailand’s parliament and House of Representatives are being shaped this week as officials are working to identifying what roles’ MPs will receive. Disputation surrounds who will be chosen for the significant leadership positions. Stress has been laid on reducing past red shirt’s involvement with the new government. Experts have stated that Thailand needs to focus on building economic bi-relations to remain competitive and Thai small and medium-sized enterprises are getting hit the hardest with inflation climbing, increase in labor costs and the hike in minimum wages. The Deep South remains a prominent security issue with varying reports of violence, including the recruitment of youth in insurgent militant operations. The future of food security has been identified as a prominent issue and Thailand is acting to improve its working relationships with China and Vietnam.
Politics
Thailand’s new parliament officially opened on Monday August 1st and government officials have the daunting task ahead to organize the 500-seat lower house chamber, assign MPs to their various positions and re-shape it’s long term goals to overhaul Thai politics. Khon Kaen MP Somsak Kiatsuranont has been elected the house speaker, nominated by PM in waiting Yingluck Shinawatra. Somsak’s original competition Col Apiwan Wiriyachai, a party list MP and former deputy speaker withdrew his nomination early on. There is speculation that Mr. Somsak was a prime candidate over Wiriyachai because of his lack of connection with the red shirts or last year’s riots. The Party secretary-general position has been given to Charupong Ruangsuwan and along with Yongyuth Wichaidit, Charupong will be the liaison to other collation parties in regards to shaping policies and the formation of the cabinet.
Yingluck will be officially voted in as the new prime minister on August 5th at the House of Representatives. Next week the parliament will have its first big undertaking in identifying who will be assigned what position from all the varying political parties within the 35 standing committees of the House of Representatives. First deputy House speaker Charoen Chankomol has assured the parliament is eager to finalize the positions as soon as possible.
Another factor to look forward to is whether or not the Pheu Thai Party will be giving positions to leaders from outside the political arena in order to assist the government in “starting fresh” and gaining back international trust. Kittirat Na Ranong, ex-president of the Stock Exchange, is rumored to be a favorite in potentially fulfilling the foreign minister position along with Executive Chairman of Siam Commercial Bank Vichit Surapongchai and former ambassador Vikrom Koompirochana to take on economic ministry positions. Pheu Thai MPs from the Northeast, who had a large part in electing in the PTP party, were previously expected to receive these cabinet seats. Sources state that red shirt leaders may be later assigned positions in order to not stir up controversy at the moment.
The outcome of the two July 31 re-elections and a recount in Yala revealed that Democrat Abdulkarim Dengrakina won over Pheu Thai’s Sukarno Matha. Nong Khai’s Constituency 2 and Sukhothai’s Constituency 3 re-counts maintained their original winners. Also, Tul Sithisomwong, leader of the anti-red shirt Network for Citizen Volunteers Protecting the Land, is suing the Election Commission for approving Jatuporn Prompan as a Pheu Thai list MP, claiming Jatuporn’s prison sentence nullifies his qualifications. Both Jatuporn Prompan and Nisit Sinthuprai were released from prison this week along with a 600,000 baht collateral payment (Bangkok Post).
Economic
The minimum wage was established to provide a degree of fairness for workers, enhancing the bargaining power of hard-working laborers. Sources are reviewing the unrealistic promises politicians have made to workers about high wage rises. Thailand, like most countries, experienced politicians using the promise of a wage rise to attract voters even though they might not have had authority. Many opinion pieces have cited that the new economic policies do not take into account that the wage rate should be considered against the overall economic environment.
Issues that have been reviewed include the psychological impact the prospective wage rise can have on the market, and the potential to lead to further price rises even ahead of the actual wage rise. Experts have stated that the minimum wage rise should go in line with an increase in capacity, otherwise outsourcing will follow, affecting job stability of low-income workers in the longer term.
Suggested solutions concentrate on improving policy platforms to boost the capacity or productivity of workers, plus education and training to create a more sustainable improvement in economic wellbeing. Building skills and capacity have been included as key initiatives so that citizens may worry less about a minimum wage because they can use their skills to better negotiate their income level.
From the business perspective, the wage increase can have potential positive results. Panyapiwat Institute of Technology and the Thailand Development Research Institute (TDRI) has stated that it will help stimulate domestic consumption in order to make Thailand less reliant on exports and international economic insecurity. Experts have claimed that Thailand needs to focus on building better relations with neighboring countries by enhancing the service sector and driving agricultural growth with a clear direction. Taking a look at China and their rapidly growing influence on Bangkok’s economy, Thailand would struggle to compete with Chinese manufactured goods. This is especially a problem for small and medium-sized enterprises which make up 99.6 per cent of all businesses in Thailand.
Thailand’s outgoing Prime Minister Abhisit Vejjajiva will deliver his farewell address to the nation on the evening of August 4, 2011, focusing on a brief account of his government’s performance on economic and social policies. Mr Abhisit emphasized, “I will point out to the public the country’s current financial status. Now Thailand has US$180 billion of reserves, a figure which indicates stable financial status, while treasury reserves stand at Bt300 billion.” Abhisit has stated his disagreement with the new government’s plan to borrow a substantial amount of money to stimulate the Thai economy, saying Thailand should instead focus on tackling the issues that are pressing for the people.
Security
The South of Thailand continues to grapple with the stronghold of violence. A recent intelligence report claims that insurgents are often recruited as youth, especially after their parents are victims in violent attacks. Statistics cited that about 10,000 youths have lost one or both parents to the insurgency since 2004 and about 80% of orphans in Narathiwat, Yala and Pattani are so as a result of violence.
Rail services in Narathiwat remained suspended for a few days to repair the damage and increase security following the bombing of State Railway tracks in the Rangae district. Officials suspect the bombing was a reaction to the seizing of 60,000 methamphetamine pills from a narcotics trafficking group on the railway.
This week the Thai appeal court renewed the life sentence of Rosdi Mayama, a member of the separatist Barisan Revolusi Nasional Melayu Patani (BRN-C) group, who had been found guilty for weapon procurement, propaganda campaigns, bombings and disorderly attacks.
In Pattani, 2 villagers and 5 police officers were wounded in a bomb attack. In the Thung Yang Daeng district, fire was opened at a check point protecting teachers and 1 soldier was killed and 2 others wounded by a bomb blast. In the Ruso district of Narathiwat, 1 villager was killed and another seriously wounded in an open gun attack at a fresh market (Bangkok Post) (MCOT).
Food security has been a prominent issue this week both in Thailand and bi-laterally. Weather pattern changes and the demand for bio-fuel in Thailand have endangered agriculture supply and will very likely heighten prices. Experts are stressing a need to develop government policies and private sector measures regarding water resource management and a balance of land allocation. Improved policies will support farmers and the future of agricultural infrastructure.
Mon IDPs’ living near the Burmese border are facing serious food shortages as a result of the denial of aid agencies to transport rice by the Thai government. Officials say this is due to security and hostility concerns. 3,603 people from four villages in the Halockhani camp are facing deprivation of food supply (Bangkok Post) (The Irrawaddy).
China’s relationship with Thailand is under scrutiny as experts examine upcoming mutual projects. Yingluck has announced her support for China to construct high-speed trains on five main routes across Thailand, linking Thailand to Laos. Skepticism regarding trains are related to safety and the extensive time and money that the trains will require. Chinese investors have begun building a US $1.5 billion China City Complex, potentially staffing 70,000 Chinese citizens, to produce clothing, household items and other goods in order to import them as “made in Thailand”, reducing tax incurred. China also gave $49 million in military aid and credits to Thailand after last year’s riots and suggested the Thai-Chinese military work together to develop small-scale Special Forces joint exercises. One example so far has been “Strike-2010,” where Special Forces came together to practice shooting, assaults and strategy. Thai’s experts have implied weariness regarding the quality of Chinese made weapons. Food exportation has rapidly diversified and increased but has also been cause for concern. In addition to replacing local food suppliers, contamination risks have been identified and Thailand’s Food and Drug Administration recently increased checks on food testing for mercury, melamine, pesticides and other hazardous substances (Asia Sentinel).
A release was made concerning Vietnam and Thailand when army generals agreed to enhance cooperation in maritime efforts such as search and rescue, sea patrols, exchange of delegations and logistics. In addition, both countries vowed to increase support for defense framework cooperation within ASEAN States (VOV News).
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